LUNA is the native token of Terra 2.0, a new blockchain launched in May 2022 as a continuation of the Terra project following the catastrophic collapse of the original Terra/LUNA ecosystem. Created via community governance vote, Terra 2.0 (also called “Terra Phoenix”) abandoned the algorithmic stablecoin model that caused the original collapse and launched as a Cosmos-compatible smart contract platform. The original Terra chain was rebranded Terra Classic (LUNC).
| Stat | Value |
|---|---|
| Ticker | LUNA |
| Price | $0.06 |
| Market Cap | $44.24M |
| 24h Change | +3.3% |
| Circulating Supply | 709.98M LUNA |
| All-Time High | $18.87 |
| Contract (Terra 2) | uluna |
| Contract (Osmosis) | ibc/78...4EF9 |
Background: The Original Collapse
Terra’s original architecture:
- LUNA (original): Absorbed UST volatility; minted/burned to maintain UST’s $1 peg
- UST: Algorithmic stablecoin backed by LUNA’s market cap
- Collapse: In May 2022, UST de-pegged. Arbitrage mechanism printed astronomical amounts of LUNA to restore the peg, causing hyperinflationary collapse. ~$40 billion in value destroyed.
Terra 2.0 Launch
A community vote in May 2022 decided to:
- Fork the Terra state at a pre-attack snapshot
- Launch a new chain (Terra Phoenix) with LUNA as the native token
- Do NOT include UST in Terra 2.0
- Airdrop new LUNA to: original LUNA holders, UST holders, Luna Classic holders
Airdrop allocation:
- Pre-attack LUNA holders: 35%
- Pre-attack UST holders: 10%
- Post-attack LUNA Classic/UST: 15%
- Community pool and developers: 40%
History
- May 2022 — Original Terra/LUNA collapse; UST/LUNA death spiral wipes ~$40B.
- May 2022 — Do Kwon proposes Terra 2.0 fork; community vote passes.
- May 28, 2022 — Terra 2.0 mainnet launches; LUNA airdrop distributed.
- March 2023 — Do Kwon arrested in Montenegro for travel document fraud.
- January 2024 — U.S. criminal charges filed against Do Kwon.
- 2024 — Do Kwon extradited to the United States.
Social Media Sentiment
LUNA 2.0 is viewed with significant skepticism on X/Twitter. Many retail investors lost life savings in the 2022 collapse; the Terra brand carries extreme negative association. Terra 2.0 has struggled to attract meaningful developer activity or TVL. Do Kwon’s arrest added criminal proceedings to the project’s reputational problems. Some continue to trade LUNA2 speculatively, but the token is generally regarded as a cautionary tale rather than a legitimate investment thesis. Often cited in discussions of “failed reboots” alongside similar fork projects.
Last updated: 2026-04
Related Terms
Sources
- CoinGecko — Terra (LUNA) — token data.
- Terra 2.0 Fork Proposal — original governance vote.
- Reuters — Do Kwon Arrested — arrest coverage.